A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following: • a. Total merchandise available for sale – at cost and at retail • b. Cost complement • c. Ending retail book value of inventory • d. Stock shortages • e. Adjusted ending retail book value • f. Gross profit Question # 2:A retailer has a beginning monthly inventory valued at $60,000 at retail and$25,000 at cost. Net purchases during the month are $150,000 at retail and$70,000 at cost. Transportation charges are $7,000. Sales are $150,000.Markdowns and discounts equal $20,000. A physical inventory at the end of themonth shows merchandise valued at $10,000 (at retail) on hand. Compute thefollowing:a. Total merchandise available for sale - at cost and at retail• b. Cost complementc. Ending retail book value of inventory• d. Stock shortagese. Adjusted ending retail book value• f. Gross profitQuestion # 3:

Total merchandise available for sales - at cost Beginning inventory + Net purchases + transportation…

Answered: A retailer has a beginning monthly…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following: • a. Total merchandise available for sale – at cost and at retail • b. Cost complement • c. Ending retail book value of inventory • d. Stock shortages • e. Adjusted ending retail book value • f. Gross profit

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